XRP Shows Strong Recovery Against Bitcoin, Potential For Further Gains

According to Cointelegraph, XRP (XRP) has experienced a significant resurgence against Bitcoin (BTC), gaining approximately 30% since July's 'triple bottom.' A combination of fundamental and fractal indicators suggests that XRP is well-positioned for continued gains in the coming months. The XRP/BTC trading pair has rebounded by over 50% after hitting a local bottom at around 760 satoshis in early June 2024. This low is notable as it closely aligns with the support level that preceded a 500% rally between January and May 2021. During the 2021 rally, XRP/BTC faced resistance at its 50-week exponential moving average (50-week EMA), leading to a pullback before resuming its upward trend. A similar pattern emerged in August 2024, where the pair encountered rejection after testing the 50-week EMA. If XRP/BTC can overcome this resistance, it could indicate a bullish trend toward the 200-week EMA at around 1,890 satoshis, potentially rising by approximately 100% by the end of 2024. Another bullish signal for XRP is Bitcoin's potential peak in market dominance, which typically follows its halvings. For example, the Bitcoin Dominance Index (BTC.D) dropped by over 70% after its second halving in July 2016, suggesting that traders shifted their capital from BTC to altcoins like XRP. However, XRP/BTC underperformed following the third halving in May 2020, primarily due to the United States Securities and Exchange Commission’s (SEC) lawsuit against Ripple in December 2020, which affected investor confidence. As of August 2024, the SEC vs. Ripple lawsuit has been resolved, with Ripple ordered to pay a $125 million penalty for illegally selling XRP to institutional investors. Since the ruling, XRP/BTC has risen by about 15%, indicating potential for further gains, especially if Bitcoin dominance declines post-halving as expected. In US dollar terms, XRP appears significantly underbought compared to most top cryptocurrencies, including Bitcoin, in 2024. XRP/USD was down by approximately 3.5% year-to-date, while BTC/USD gained 37.80% in the same period. Other altcoins, such as Ether (ETH), Solana (SOL), and BNB (BNB), have also outperformed XRP, rising 13%, 30%, and 84% respectively in 2024. XRP's relative underperformance could suggest that it has room to catch up if market conditions become more favorable. Investors might view this as an opportunity for XRP pairs to rally, particularly if the broader altcoin market continues to perform well. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.